Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) (the “Company” or “DTC”), formerly 3tl Technologies Corp., a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS), announces its financial results for the quarter ended March 31, 2018 (“Q1 2018”).
For Q1 2018, the Company achieved the following milestones:
DTC signed 15 new license agreements to provide PLATFORM³ to leading Consumer Packaged Goods (CPG) brands.
Revenue for Q1 2018 increased by 92% to $388,259 compared to revenue for the quarter ended March 31, 2017 (“Q1 2017”).
The average dollar value of license agreements has increased by approximately 60% to $69,000 compared to 2017, including short-term targeted shopper marketing promotions and annual/multi-year SaaS licenses.
Many of these agreements represent a growing trend of repeat business from leading U.S based consumer brands.
The Company is also pleased to provide the following 2018 updates:
In 2018 year to date, DTC has signed 20 agreements which account for approximately $1.5 million in total contract value, of which 75% is expected to be recognized as revenue in 2018.
DTC has several annual agreements where PLATFORM³ hosts an ongoing digital loyalty and rewards program. DTC is generally paid an annual license fee plus transactions fees based on the number of times consumers validate purchases using PLATFORM³. The $1.5 million in contracted revenues noted above only accounts for license and service fees, and does not include any transaction fees.
The Company’s name was changed to “Datable Technology Corporation” from 3tl Technologies Corp. effective May 18, 2018 (see press release dated May 18, 2018).
“We’ve gotten off to a running start in this first quarter of 2018, that is a testament to the value proposition delivered by our platform and our excellent customer service,” said Robert Craig, DTC’s CEO. “We continue to be encouraged by license renewals and extensions from repeat customers, success with new customers, longer-term agreements, and PLATFORM³’s ability to drive ROI for our customers with its various modules such as: Contests & Promotions, Purchase Receipt Validation, Loyalty, Rewards & Gamification, Data Capture & Analytics, and Retargeting & Automated Messaging.”
Results of Operations:
Revenue for Q1 2018 increased by 92% to $388,259, compared to revenue for Q1 2017. Gross profit for Q1 2018 increased by 88% to $280,119, compared to Q1 2017.
Gross margin as a percentage of revenue for Q1 2018 was 72%, compared to 73% in Q1 2017. Gross margin as a percentage of revenue depends on the product mix for the reporting period. Revenues are comprised of a combination of higher margin sales of PLATFORM³, the Company’s proprietary SaaS product, combined with some lower margin third party services.
General and administrative expenses for Q1 2018 decreased by 10% to $259,088, compared to Q1 2017, mainly due to decreased investor relations expenses. General and administrative expenses include salaries and benefits, accounting, legal, investor relations, travel, rent, office, other administrative costs
Research and development expenses for Q1 2018 increased by 111% to $139,377 compared to Q1 2017. Research and development expenses may increase in the future as the Company seeks to evolve and improve PLATFORM³, as well as to invest in creating new technology and products that will enhance the Company’s value proposition to customers and provide additional revenues.
Net and comprehensive loss for Q1 2018 was $712,380 compared to $421,032 for Q1 2017. This increase was mainly due to the increase of share-based compensation expenses, net of increase of revenue and corresponding gross profit.